Short answer
A first-time buyer in Canada needs at least 5% down on the first $500,000 of the purchase price and 10% on the portion above it, plus closing costs of roughly 1.5% to 4%. Mortgage default insurance applies under 20% down, and you must qualify at the stress-test rate — the higher of your contract rate plus 2% or 5.25%. Programs such as the FHSA, the RRSP Home Buyers' Plan and the first-time buyers' tax credit can all be used together.
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First Time Home Buyer Overview
Purchasing your first home is one of the most exciting — and sometimes overwhelming — milestones you'll experience. There's a lot of information to absorb, from understanding how much you can afford, to navigating pre-approvals, down payments, and closing costs.
That's exactly why working with a licensed mortgage broker matters. Instead of being limited to one bank's products, I have access to 100+ lenders across Canada. I'll shop around on your behalf to find the best rate, terms, and mortgage program for your unique financial situation — and in most cases, my service is free to you as the borrower.
Benefits of Homeownership
There are many compelling reasons why Canadians aspire to own a home. Here are some of the most common benefits my clients share:
Financial Programs for First Time Buyers in Canada
As a first time home buyer in Canada, you may qualify for several programs and incentives designed to make homeownership more accessible:
Program details and eligibility requirements can change — connecting with a licensed mortgage broker ensures you have the most current information and don't miss any opportunities.
Understanding Down Payments in Canada
One of the first questions every first time buyer asks is: how much do I need for a down payment? Here's the current breakdown:
If your down payment is less than 20%, you'll need mortgage default insurance (commonly called CMHC insurance). This protects the lender and is added to your mortgage balance. While it's an extra cost, it allows you to enter the housing market sooner with a smaller down payment.
Why Work with a Mortgage Broker?
Walking into a bank means you're limited to that bank's products and rates. As an independent mortgage broker, I represent YOU — not the lender. Here's what that means:
Whether you're a salaried employee, self-employed, a newcomer to Canada, or have unique credit circumstances — I've helped clients in all situations find the right mortgage.
Your Step-by-Step Path to Homeownership
Check Your Credit & Finances
Review your credit score and get a clear picture of your income, debts, and savings. This helps me determine which lenders and programs you qualify for.
Get Pre-Approved
I'll submit your profile to lenders and secure a pre-approval — this tells you exactly how much you can afford and locks in a rate for 90–120 days.
Find Your Home
Work with a realtor to find a property that fits your budget and lifestyle. Your pre-approval gives you confidence to make a competitive offer.
Make an Offer & Complete Conditions
Once your offer is accepted, you'll need to satisfy conditions like a home inspection, appraisal, and finalizing your mortgage. I handle the financing side.
Review & Sign Mortgage Documents
I'll walk you through the final mortgage terms so you understand everything — rate, payment schedule, prepayment privileges, and any penalties.
Hire a Real Estate Lawyer
Your lawyer handles the legal transfer of the property, registers the mortgage, and ensures everything is in order for closing day.
Get Home Insurance
Home insurance is required before closing. Shop around for the best coverage — your lender will need proof of insurance before funding your mortgage.
Closing Day — Get Your Keys!
Your lawyer completes the transaction, funds are transferred, and you pick up your keys. Congratulations — you're officially a homeowner!
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Frequently Asked Questions
How much do I need for a down payment as a first time buyer?
The minimum down payment in Canada is 5% for homes up to $500,000. For homes between $500,000 and $1,499,999, you need 5% on the first $500,000 and 10% on the remainder. Homes at $1,500,000 or above require at least 20% down.
What is mortgage default insurance (CMHC insurance)?
If your down payment is less than 20%, mortgage default insurance is required. It protects the lender in case of default and is typically added to your mortgage balance. The premium ranges from 2.8% to 4.0% of the mortgage amount depending on your down payment size.
How long does the home buying process take?
From pre-approval to closing, the process typically takes 30 to 90 days depending on your situation, market conditions, and how quickly you find a home. Getting pre-approved first puts you in a strong position to act quickly.
What is the Home Buyers' Plan (HBP)?
The HBP allows first time home buyers to withdraw up to $60,000 from their RRSP tax-free to put toward the purchase of a qualifying home. You have up to 15 years to repay the amount back into your RRSP.
What is the First Home Savings Account (FHSA)?
The FHSA is a registered savings account that lets you contribute up to $8,000 per year (lifetime maximum of $40,000) toward buying your first home. Contributions are tax-deductible and qualifying withdrawals are completely tax-free.
Do I need to pay the mortgage broker?
In most residential mortgage transactions, my service is free to you. The lender pays me a commission for bringing them your business. I'll always be transparent about any situation where a broker fee might apply.
What credit score do I need to buy a home?
Generally, a minimum credit score of 600 is needed for most insured mortgage programs. However, a higher score gives you access to better rates and more lender options. If your credit needs work, I can help you with a plan to improve it.
Have questions about first time home buyer?
Call for a free, no-obligation consultation.
(604) 780-5173
